business portfolio

exploration

In 2015, Chevron became operator of three offshore exploration permits located in the East Coast and Pegasus basins. The deepwater permits cover roughly 6.2 million total acres (25,252 sq km). Chevron has a 50 percent interest in the permits, or 3.1 million net acres (12,545 sq km).

The permits are located approximately 99 miles (160 km) east of Wellington in water depths ranging from 2,600 feet (800 m) to more than 9,800 feet (3,000 m).

During the initial stages, we will study the geological characteristics of the area by collecting data through geochemical, geotechnical, bathymetric and seismic surveys. Acquisition of seismic data by Schlumberger New Zealand as part of a multiclient survey was completed in the second quarter of 2017, and the data is being processed.

marketing, retail and refining

Consumers throughout New Zealand are familiar with Chevron’s Caltex® brand, which first entered the local market in 1936.

Chevron’s fuels and lubricants businesses in New Zealand, including our network of Caltex® service stations, were operated by our Downstream subsidiary, Chevron New Zealand, through May 2016. In June 2016, Chevron completed the sale of Chevron New Zealand to Z Energy Limited, a locally owned energy company. The Caltex® brand remains in the New Zealand market through a licensing agreement with Z Energy Limited. Our Caltex® lubricant products are available through Z Energy Limited, the authorized distributor.

offshore progress

Chevron has established itself as a leader in safely exploring for oil and natural gas in deepwater environments.

Our work off the coast of New Zealand is in the early stages.

In mid-2015, data from a multibeam sonar survey was collected as part of a larger program by New Zealand’s National Institute of Water and Atmospheric Research (NIWA) to map the seafloor off New Zealand’s east coast. In late 2015, Chevron engaged the New Zealand company Fugro-BTW Ltd to conduct a seafloor sampling program.

The sampling program, which involved the use of the NIWA vessel RV Tangaroa, will enable a better understanding of the permit areas. The data will help characterize naturally occurring hydrocarbon seeps and identify potential hydrocarbon-bearing rocks.

Acquisition of 3-D seismic data began in late 2016 and was completed in the second quarter of 2017.

in the community

Chevron supports health, education and public safety initiatives in New Zealand.

health

Chevron supported the work of Starship Children’s Health through the Starship Foundation for several years, by providing the nation’s largest children’s hospital with fuel and sponsoring fundraising events. In 2013, we joined Starship’s Safekids program in a campaign to publicize new child booster seat laws. The campaign sent information packets to every primary school in New Zealand. In 2014, our Swipe for Starship campaign helped raise more than $75,000 in one week to pay for improvements to the operating rooms in the 21-year-old hospital. In 2015, the campaign raised more than $75,000 toward the future upgrade of two of the hospital’s pediatric wards.

safety

Chevron also worked with the New Zealand Transport Agency and the Automobile Association to start a driver training program aimed at youth who don’t have access to driver training materials and vehicles. The goal is to give students the safe driving skills needed to obtain a restricted driver’s license. This license allows them to drive alone, which is a major benefit to young drivers in rural communities because it increases their independence and their ability to seek employment. This program is now operating in six communities around the country with great success and was recognized in 2015 when it won the Deloitte Energy Excellence Award – Community Initiative of the Year.

Chevron, through its Caltex® brand, was an official partner for Students Against Dangerous Driving (SADD) in 2014 and 2015. For more than 30 years, SADD has provided support and resources for peer-to-peer education about the importance of safe driving practices. Active in more than 750 schools nationwide, SADD continues to be an integral part of communities by providing youth leadership and guidance on driving and empowering youths to speak up when they see unsafe behavior.

education

In 2015, Chevron expanded its Fuel Your School® program in New Zealand, kicking off a new campaign. More than $75,000 was raised for grants that support science, technology, engineering and mathematics curricula. The grants will help nearly 30 local schools and their communities in a variety of projects into the foreseeable future.

Marine mammal observers course
Chevron contributed funds for the Marine Mammal Observers and Passive Acoustic Monitoring course in 2015. This course, organized by the Petroleum Exploration and Production Association New Zealand, encourages iwi – the Māori people of New Zealand and a key stakeholder group for Chevron New Zealand Exploration Ltd. – to participate more fully in the country’s oil and gas sector. The course provides 16 candidates with training for future employment on planned seismic acquisition programs. It also meets the requirements of the government’s Code of Conduct for Minimising Acoustic Disturbance to Marine Mammals From Seismic Survey Operations. When applicable, Chevron encourages our contractors to hire course graduates as marine mammal observers.

We plan to continue supporting the local communities where Chevron operates through community partnerships and sponsorships.

record of achievement

Chevron has been operating in New Zealand since 1920, first as Texaco, then as Caltex New Zealand and until May 31, 2016, as Chevron New Zealand.

In December 2014, we announced that our New Zealand Upstream subsidiary, Chevron New Zealand Exploration Ltd., became operator of three permits located east of Wellington in the Pegasus and East Coast basins.

Protecting the health and safety of our workforce is a core Chevron value. As of the end of 2015, our employees had recorded no days away from work due to injury since June 2004, and our contractors, since mid-2009. That is equivalent to more than 2.7 million hours of safe work for the entire workforce.

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CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This Website contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward- looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; the company's ability to realize anticipated cost savings and expenditure reductions; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the company's suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond its control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the impact of the 2017 U.S. tax legislation on the company's future results; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company's ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 19 through 22 of Chevron’s 2017 Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements.

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